A group of Wisconsin residents has filed a proposed class action suit claiming that General Motors Acceptance Corporation (GMAC), the nation's largest auto finance company and a wholly owned subsidiary of General Motors Corporation, knowingly and systematically violated Wisconsin law by repossessing cars without proper notice or court order.

The suit also claims that the company resold the cars and pursued the former owners for additional costs.

The suit, filed in Milwaukee County Circuit Court, would represent all Wisconsin lessors or purchasers whose cars where repossessed by the Troy, Mich.-based lender from June 1, 1996 until the present if approved as a class action. The suit seeks punitive damages for the class members as well as an immediate halt to the allegedly illegal repossessions.

"Our suit contends that GMAC knew that they were in clear violation of state law almost every time they hooked up the tow truck in these repossession cases," said Steve Berman, attorney for the plaintiffs. "We will show that they failed to give people fair notice about their right to cure their delinquent payments, blindsiding them with repossession with the intention of selling the cars at auction and saddling the owners with the difference between the prices."

According to the suit, GMAC routinely failed to provide owners any notice of default or notice of the intent to repossess. The suit also claims that GMAC did not provide customers with the ability to resolve overdue charges nor did it obtain a court judgment to repossess the vehicles, all necessary under Wisconsin law.

One of the named plaintiffs, Lawrence Yachinch, leased his car from General Motors in January of 1998. According to the suit, Yachinch made on-time payments, but when he fell behind in his payments, GMAC summarily repossessed Yachinch's vehicle without notifying him of the possibility, nor giving him the opportunity to bring his account up-to-date.

GMAC then filed suit against Yachinch, suing him for the difference between the sale price and the amount due on the lease. GMAC then compounded their wrongdoing by obtaining a judgment against Yachinic and then garnished his wages, the suit contends.

"In Yachinch's case, GMAC rushed headlong into the repossession action without getting the necessary court order," Berman claimed. "Not only did GMAC ignore Wisconsin law, it caused Mr. Yachinch immeasurable -- and unnecessary -- shame and humiliation."

The suit claims GMAC violated the Wisconsin Consumer Act. The court will review the case to determine if it can move forward as a class action.

In its history, GMAC has extended more than $1 trillion in credit to finance more than 146 million vehicles worldwide. In 1999, GMAC had its best year ever with $1.5 billion in earnings.

Steve Berman, managing partner of Seattle-based Hagens Berman, and Paul Piaskoski of Milwaukee-based Piaskoski & Associates, a business and civil litigation law firm, filed the suit.